Unlike selling a stock, investment properties can't be unloaded in a few seconds with a click of your mouse. The time between the decision to sell and the actual date of sale is often measured in weeks or months. Selling your own home can be an intimidating process if you don't know where to start, but selling an investment property requires even more work. The amount of capital and the taxation issues surrounding the realization of that capital are complex when dealing with investment real estate. It is not, however, impossible to accomplish on your own.
Incorporating as a Shield
Incorporating is becoming increasingly popular for real estate investors. By incorporating, investors can lessen their personal liability making the corporation act as a shield between you and the potential that a tenant may sue you. Your house and personal finances cannot be claimed in any kind of court settlement when you incorporate. Corporations also have different tax rules that are quite favorable, especially with the capital gains from selling a property.
To keep up to date with ways to save your investments (subscribe to our NEWS letter here.)